London's FTSE declines after reaching 15-year high, as geopolitics weighs

Britain's top share index headed for a 15-year high on Wednesday before beginning to decline, as the market alternated between concern that a ceasefire in Ukraine was crumbling and optimism that a deal over Greek debt was in reach, Reuters reports.

The FTSE 100 index (FTSE) climbed to 6,921.32, its highest since January 2000 and only 0.4 percent off the record high of 6,950.60 set in December 1999, then began to slip lower.

According to technical analysts, while the new peak could spur the market on towards a record high, a failure to close above 6,900 could see the market drop away again.

"This could turn out to be a false breakout for, after all, it is not the first time the FTSE has peaked above 6,900 only to then stage a sell-off," Fawad Razaqzada, technical analyst at Gain Capital said quoted by Reuters UK.

"A decisive close above 6,900 would be a particularly bullish outcome, while below this key level would be bearish."

On Wednesday Ukraine government forces started pulling out of a town in eastern Ukraine after a fierce assault by separatists which Europe said violated a ceasefire agreement.

"We see market risk led by Ukraine and geopolitics as among the key drivers for a move lower (in the FTSE)," Atif Latif, director of trading at Guardian Stockbrokers, said.

Coca-Cola Hellenic dipped 2.6 percent after the company reported a 11.4 percent drop in profits and on concern about developments in Ukraine. It has substantial exposure to Russia, which has seen sanctions imposed by the West over the conflict in Ukraine.

The FTSE 100 underperformed the euro zone's Euro STOXX 50 .STOXX50E, up 0.5 percent after Greece said it intends to ask on Wednesday for an extension of its loan agreement with the euro zone.